Second Catholic university may drop health insurance

Ed MorrisseyPosted at 3:21 pm on May 17, 2012

On the heels of the decision by Franciscan University to dump their health insurance due to the combined effects of the HHS mandate and escalating costs, Fox News reports that a second Catholic university may opt to cancel their insurance coverage. For Ave Maria University in Florida, the issue appears to mainly be about the costs:

Like Franciscan University — the Steubenville, Ohio, school that just announced it is dropping student coverage — Ave Maria officials are opposed to the so-called contraceptive coverage mandate. But for both schools, premium costs associated with new coverage requirements appear to be fueling their anxiety.

“We’re studying it right now,” Ave Maria University President James Towey told FoxNews.com. “My own sense is, I don’t see … how it makes sense for us to stay in this.”

University officials plan to meet Monday to discuss their insurance options and potentially make a decision.

Towey said the school’s insurance provider told them that students would be looking at a premium increase ranging from 65 to 82 percent in the coming year if no changes are made.

“At a minimum, we’ve got to communicate to students on why they’re going to see a huge spike in insurance,” Towey said. He added, though, “we just might get out of this business.”

Why are costs skyrocketing for universities? Their previous health insurance coverage probably calculated risk for the young, healthier average profile of an American college student. Men and women of that age don’t need comprehensive insurance; they only need hospitalization and basic wellness coverage, and even the latter would be better handled through high-deductible plans rather than expensive comprehensive coverage. To meet the requirements of health insurance in ObamaCare, schools will have to buy much more robust coverage than necessary for typically healthy college students, and that means a much higher cost.

That’s what happens when government insists on forcing other people to cover the risk cost of others, even when it’s unnecessary. That’s not a problem limited to ObamaCare in this administration, but ObamaCare plays a large role in Team Obama’s sales pitch for another term, especially in its Life of Julia. Michael Ramirez of Investors Business Daily shows the essential freeloading nature of Obamanomics (via Instapundit):

Also, be sure to check out Ramirez’ terrific collection of his works: Everyone Has the Right to My Opinion, which covers the entire breadth of Ramirez’ career, and it gives fascinating look at political history. Read my review here, and watch my interviews with Ramirez here and here. And don’t forget to check out the entire Investors.com site, which has now incorporated all of the former IBD Editorials, while individual investors still exist.